Correlation Between Cellink AB and BrainsWay
Can any of the company-specific risk be diversified away by investing in both Cellink AB and BrainsWay at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Cellink AB and BrainsWay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cellink AB and BrainsWay, you can compare the effects of market volatilities on Cellink AB and BrainsWay and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Cellink AB with a short position of BrainsWay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellink AB and BrainsWay.
Diversification Opportunities for Cellink AB and BrainsWay
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cellink and BrainsWay is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Cellink AB and BrainsWay in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BrainsWay and Cellink AB is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Cellink AB are associated (or correlated) with BrainsWay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BrainsWay has no effect on the direction of Cellink AB i.e., Cellink AB and BrainsWay go up and down completely randomly.
Pair Corralation between Cellink AB and BrainsWay
Assuming the 90 days horizon Cellink AB is expected to under-perform the BrainsWay. But the pink sheet apears to be less risky and, when comparing its historical volatility, Cellink AB is 3.54 times less risky than BrainsWay. The pink sheet trades about -0.02 of its potential returns per unit of risk. The BrainsWay is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 247.00 in BrainsWay on November 7, 2024 and sell it today you would earn a total of 606.00 from holding BrainsWay or generate 245.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.09% |
| Values | Daily Returns |
Cellink AB vs. BrainsWay
Performance |
| Timeline |
| Cellink AB |
| BrainsWay |
Cellink AB and BrainsWay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cellink AB and BrainsWay
The main advantage of trading using opposite Cellink AB and BrainsWay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellink AB position performs unexpectedly, BrainsWay can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in BrainsWay will offset losses from the drop in BrainsWay's long position.| Cellink AB vs. Aurora Spine | Cellink AB vs. Ainos Inc | Cellink AB vs. Armm Inc | Cellink AB vs. Bone Biologics Corp |
| BrainsWay vs. Brainsway | BrainsWay vs. Bluejay Diagnostics | BrainsWay vs. Venus Concept | BrainsWay vs. Icecure Medical |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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